Indonesia Q3 GDP Growth Eases to 5.04% Amid Slower Spending

Indonesia’s economy expanded 5.04% year on year in the third quarter, easing from 5.12% in Q2 as weaker sentiment and late-August protests weighed on spending and investment. The figure, matching Bloomberg forecasts, still outpaced regional peers but indicated softer domestic demand under President Prabowo Subianto’s new administration. Economists said the slowdown could prompt Bank Indonesia to remain dovish, with OCBC’s Lavanya Venkateswaran expecting a cumulative 50-basis-point cut ahead, following 125 bps of easing since September last year. Rising living costs and political uncertainty have curbed consumer momentum in the 280-million-strong market. Still, resilient exports and public investment may help maintain full-year growth close to recent trends, supporting investor confidence in Indonesia’s GDP outlook.